The Franklin Templeton representatives welcomed the opportunity to engage in a constructive dialogue with the newly-appointed Romanian Prime Minister. The discussion focused on the Government’s plans to list minority stakes of state-owned companies on the Bucharest Stock Exchange (BVB), the importance and implementation of professional management in state-controlled firms, and lastly, the new Corporate Governance Code introduced by Government Emergency Ordinance no. 109/2011 on 14 December 2011.

Dr. Mobius, commented: ”This was a very productive meeting. We are very much encouraged by the Romanian Government’s plans for privatisation and we hope to see an unwavering commitment to the process which will be critical to bringing these plans to fruition. We firmly believe that these developments will bring added benefits to the local stock market and the local economy. Increased transparency and enhanced corporate governance standards would help bring increased profitability and efficiency for companies, while generating wider attention from foreign investors towards the Romanian market. In this regard, we particularly welcome the new Corporate Governance Code which is a step forward towards reforming state-owned enterprises and helping to ensure that minority shareholders rights are fully observed.”

Greg Konieczny, Fund Manager of Fondul Proprietatea, added: “The Fund welcomes the ongoing efforts made by the Romanian Government to list additional state-owned companies on the BVB and improve standards of corporate governance. These are two very important factors that the Fund has been advocating for the last two years and we are pleased with the progress achieved so far. However, there is still much to be done. We look forward to working more closely with Romanian Government and truly engaging with them on these matters, which should ultimately have a positive impact on the Romanian economy and the Fondul Proprietatea portfolio.”